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Clergy Taxes

Posted: Tue Apr 18, 2017 7:43 pm
by ngaham
Hey,
Do any of you reimburse your pastor for taxes they paid? Our Pastor turned in a reimbursement for the State taxes he paid and said the church has done this for years. Is this normal?

Re: Clergy Taxes

Posted: Tue Apr 18, 2017 10:24 pm
by NeilZ
ngaham wrote:Hey,
Do any of you reimburse your pastor for taxes they paid? Our Pastor turned in a reimbursement for the State taxes he paid and said the church has done this for years. Is this normal?
No. Most churches assist with the Social Security Offset because ministers have to pay Self-Employment (SECA) tax, but unless its part of the congregation's call to the minister, I've never heard of that being done.

FWIW .. if this is something that your congregation does, that reimbursement is taxable under Federal Income Tax.